The impact of marketing communication and price promotion on brand equity

Abstract

This paper establishes a theoretical and empirical basis that shows the impact of marketing communications and price promotion on brand equity. The theoretical review supports applying analysis techniques based on structural equations models to confirm empirically the relationship between marketing communication efforts and the dimensions of brand equity: perceived quality, brand loyalty, brand awareness and brand image. This measurement model is verified on a sample group of families which purchased durable goods — in this case a washing machine. The results indicate the positive effect of marketing communication on brand equity, and offer strong support for the measures of perceived quality, brand loyalty, brand awareness and brand image as antecedents of brand equity.